Online Ads: Strikes plus Politics = Crazy-Delicious

Along the way to making a bullish call for Yahoo stock — partly valuation-based and partly-catalyst-based — JPMorgan analysts this morning point out some factors working in online advertising’s favor:

We think traditional ad dollars will move to online graphical advertising at an accelerated rate given the lower than expected TV audience due to the writers’ strike and as political ad campaigns consume a sizeable portion of the fixed prime time and cable TV inventory. With the New Hampshire primaries and Iowa caucus yielding surprise results, we now expect political spend to top our prior estimate of $600M and view this as a positive for internet advertising.